Downvaluations and Overestimations – the surveyors view of the Mortgage Valuation Report
An interesting article for new and existing mortgage borrowers from the Director of surveying firm e.Surv who are on the panel with select mortgage lenders to value properties on behalf of the lender but the valuation report (basic mortgage survey) is paid by the applicant on most occasions, unless the chosen lender offers a free basis mortgage survey incentive.
Richard Sexton – Director of e.Surv:
“One challenge is that, given the frequent requirement to hit a particular value to secure the mortgage offer, the proposed value of a property can be overestimated during the purchase or remortgage process. As a result, when surveyors submit a more realistic valuation to the lender, they can sometimes be seen as pouring cold water on the application.”
“The process is designed to capture a wider range of information that the lender will need in order to decide whether the property is safe to lend on and up to what amount.
Surveyors will typically assess the following:
• The overall condition of the property, including any work that has been done to modernise it;
• Whether the accommodation declared is accurate;
• Whether the property is affected by external issues such as being in a high-risk flood zone, or above a shop or restaurant;
• A basic check of any structural issues, clues that there may be damp, problems with the roof or any wiring issues. If these are flagged in the mortgage valuation report, the surveyor will often recommend that a more detailed report is completed if there is a concern.”

“Overestimates often come to light when surveyors begin to look at these figures. Every valuation is typically measured against a minimum of three other properties to compare prices and make considered adjustments that take account of differences…surveyors will need to look further afield, both in geographical terms or timewise. Older or dissimilar comparables are therefore not a sign of an inaccurate valuation, as the surveyor will make appropriate adjustments and state this on the mortgage valuation report, when considering their relevance to the subject property….just like a mortgage broker, we play an invaluable role in the homebuying process.”

Get in touch now

Search this site

Click here to calculate the cost of your Repayment or Interest Only mortgage.

What our clients say

“Hi Megan & Mark,
I just personally wanted to say thank you to you both for your assistance with our mortgage and the level of service you have given us.
A colleague recommended Turney & Associates to me and I wouldn’t have any problem recommending you to any of my friends.
Many Thanks
SB
View more

Mortgages

Our friendly, no fuss, truly independent approach to getting the best mortgage for you

Equity Release

We will take the time to understand your hopes and concerns for the future.

Insurance

A wealth of experience in sourcing and arranging both personal and commercial insurance.

Commercial

Whatever the scale of your requirements our expierienced advisors can source the best deal.

Legal Services

Our legal services, conveyancing and surveys

Our network

Proud members of

Services for your area

Turney & Associates can provide advice, broker and other services in your area in the UK.

Not just a mortgage broker in Cambridge, we offer our independent mortgage, insurance and financial services across the East of England, London, the South, the Midlands, Birmingham.. in fact wherever you are in the UK, we can keep in regular communication with you and ensure you are getting a professional, personal service.

Turney & Associates Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Turney & Associates Ltd is entered on the FCA register under reference 311607.